1. Financial Statement Analysis for SIDENOR S.A.
Efstratios Patsatzis
MBA Canditate
Supervisor
Dr. Nicos Sykianakis

2. Presentation key points
Sector – Main Competitors
The Company
(History, Products, Shareholders, Structure)
Financial Statements of SIDENOR S.A.
Financial Statement Analysis

3. Presentation key points
Liquidity Ratios
Turnover Ratios
Return Ratios
Capital Structure Ratios
Investor Ratios
Conclusions

4. Sector – Main Competitors
Steel production and trading sector
Main Competitors
“HELLENIC HALYVOURGIA”
“HALYVOURGIKI”

5. SIDENOR S.A. - History
Establishment of the Company with the name “VIOHALCO - SANITAS SA”
The corporate name is changed into “STEEL INDUSTRY OF NORTHERN GREECE SA”
ERLIKON SA and SIDENOR SA commence co-operating
The corporate name is changed to “SIDENOR - STEEL INDUSTRY OF NORTHERN GREECE SA”
The corporate name is changed to “SIDENOR Steel Products Manufacturing Company SA” 

6. SIDENOR S.A. - History
ERLIKON SA lists its stock through public offering in the Main market of Athens Stock Exchange
Absorption of SIDENOR SA by ERLIKON SA and change of corporate name into SIDENOR SA
Commencement of production by rolling mill of SOVEL SA (subsidiary)
The electrode production sector is split-off from the Company and incorporated into ERLIKON Wire Processing SA. SIDENOR takes over 75% of the Bulgarian STOMANA INDUSTRY SA. The new steel mill of SOVEL SA commences production.

7. SIDENOR S.A. - History
The holding of SIDENOR SA in the subsidiary STOMANA INDUSTRY SA increases to 79.50%. KEM SA and ATTICA METAL PROCESSING SA was finalized by SOVEL SA. Sidenor’s Quality Management System is certified according to ISO 9001:2008. SIDENOR launches High Ductility grade C concrete reinforcing steel into the market.
SIDENOR acquires majority holding in CORINTH PIPEWORKS SA.
SIDENOR establishes new subsidiary DOJRAN STEEL.

8. SIDENOR S.A. - Products SD Integrated Concrete Reinforcing System
Merchant Bars
Wire Rod
Pipes - Hollow Sections
Hot-Rolled Steel Plates
Special Steels

9. SIDENOR S.A. - Structure

10. SIDENOR S.A. - Shareholders

11. Financial Statements Statement of Financial Position

12. Financial Statements Statement of Comprehensive Income

13. Financial Statements Cash Flow Statement

14. Financial Statements Cash Flow Statement

15. Financial Statements Statement of Financial Position
Fixed Assets / Total Assets
/ = 0,6080 or 60,80%
Current Assets / Total Assets
/ = 0,3920 or 39,20%
(Note: Intangible Assets / Total Assets equals zero)

16. Financial Statements Liquidity Ratios
Current Ratio
CR = Current Assets / Current Liabilities
/ = 0,846
Quick Ratio
QR = Current Assets - Inventories / Current Liabilities
/ = 0,549

17. Financial Statements Liquidity Ratios
Acid Ratio
AR = Cash / Current Liabilities
/ = 0,030

18. Financial Statements Turnover Ratios
Inventory Turnover Ratio
ITR = Cost of Sales / Avg. Inventory
/ = 2,1times / year
Days in Inventory = 365 / 2.1 = 174days

19. Financial Statements Turnover Ratios
Receivables Turnover Ratio
RTR = Sales / Avg. Receivables
/ = 5,57times / year
Days in Accounts Receivables = 365 / 5,57 = 66days

20. Financial Statements Turnover Ratios
Accounts Payable Turnover Ratio
(Purchases = Cost of Sales - Ending Inventory + Starting Inventory)
PTR = Purchases / Avg. Payable
/ ,5 = 2,39times / year
Days in Suppliers = 365 / 2,83 = 153days

21. Financial Statements Turnover Ratios
Inventory Conversion Cycle
240 days
Net Cash Conversion Cycle
87 days

22. Financial Statements Cash Flow Analysis
Cash Flow from Operating Activities
CF(OA) =
(CFoa < Current Liabilities)

23. Financial Statements Cash Flow Analysis
Cash Flow from Investing Activities
CF(IA) =
Cash flow from Financing Activities
CF(FA) =

24. Financial Statements Cash Flow Analysis
Net decrease in cash & cash equivalents for the period
Cash & cash equivalents at the end of the period

25. Financial Statements Return Ratios
Return on Total Assets Ratio
ROTA = Net Earnings / Avg. Total Assets
/ = -0,043 or -4,3%
Return on Equity Ratio
ROE = Net Earnings / Avg. Equity
/ ,5 = -0,096 or -9,6%

26. Financial Statements Return Ratios
Return on Sales Ratio
Net Earnings / Sales
/ = -0,092 or -9,2%
Total Assets Turnover Ratio
Sales / Avg. Total Assets
/ = 0,462 or 46,2%

27. Financial Statements Capital Structure Ratios
Financial Leverage
Avg. Total Assets / Avg. Equity
/ ,5 = 2,26
(equity = 1, liabilities = 1,26)

28. Financial Statements Capital Structure Ratios
Equity / Assets
/ = 42,5%
Liabilities / Assets
/ = 57,5%
Debt / Equity
/ = 1,35

29. Financial Statements Investor Ratios
Nominal Value per Share
Share Capital / No of Shares
/ = 0,41 euro
Net Accounting Value per Share
Equity / No of Shares
/ = 5,61 euro

30. Financial Statements Investor Ratios
Earnings per Share
Net Earnings / No of Shares
/ = -0,51 euro
P / E – P / BV
Price / Earnings per Share
2,42 / -0,51 = -4,75 times
Price / Book Value
2,42 / 5,61 = 0,43 times

31. Financial Statement Analysis Conclusions
Disability to cover short-term debt
Large amount of Inventory held
Long period in Accounts Receivables
Negative Cash Flow from OA

32. Financial Statement Analysis Conclusions
Negative ROTA, ROE, Return on Sales
Losses per Share
Financing Conflict